Tips on Best Homeowner's Insurance

[Hae-Yuan Chang]

Hello! 

I have been trying to find the best homeowner's insurance for an FHA that I will live in/have for rental income. I live in Florida and the home was built in 1956. There are two policy quotes I am looking at, they both cover the cost of the home $180k. One is for $1284 and the other is for $954. The cheaper one has a limited water damage policy for up to $10,000 because of the age of the home. The other doesn't have a limit. What would you do in this situation? Looking up water damage acceptability, it seems more like freak accidents that are unlikely to happen. I appreciate any insight and any tips for how to read insurance policies.